We provide independent assessments and assurance that political and stakeholder risks facing investments are well understood and managed.
Examples of services
- Due diligence on assets: political, social, environmental
- LicenseSecure™ integrated assessment of ‘license to operate’
- Political monitoring: country or asset level
- Investigations on individuals or potential partner companies
- Stakeholder mapping
- Political scenarios
- ESIAs and other assessments, e.g. security, conflict, human rights
- Environmental and social baselines
Examples of client assignments
Energy client, South America
- Context: An energy client with a South American asset was seeking an independent ‘health check’ of political and stakeholder issues prior to commencement of an exploration campaign.
- Support: We provided a rigorous review of political, stakeholder and other ‘license to operate’ issues using our LicenseSecure™ methodology. As well as providing assurance on the risks, we helped our client to further strengthen its management approach to ensure challenges were tackled in line with international best practices.
- Outcome: Our review prompted the client to adjust its country strategy, including by putting in place a more systematic approach to social investment and engagement of national political stakeholders. The project has since proceeded with minimal stakeholder opposition.
Mining client, Europe
- Context: Our client was facing multiple obstacles to project development – including violent attacks on its facilities and a highly volatile national political context – and asked for support to systematically identify and mitigate those challenges.
- Support: We conducted an assessment of challenges facing our client’s project and the quality of the company’s risk management approach. We also carried out an extensive mapping exercise of local, national and international stakeholders to allow our client to better leverage potential allies and pinpoint sources of opposition.
- Outcome: Our support helped to improve stakeholder relations and contributed to our client being able to start production at one of its expansion projects.
Private Equity Client, West Africa
- Context: A private equity firm asked Critical Resource to conduct background checks on counterparties involved in a mining-sector transaction in West Africa.
- Support: We conducted an in-depth investigation into the reputation of key individuals associated with the deal, focusing particularly on political exposures and corruption risks. To do this, we tapped into our in-country and industry intelligence networks, and also carried out thorough reviews of court records, sanctions lists and adverse media coverage.
- Outcome: Our client used our findings to provide assurance to its Investment Committee that adequate due diligence had been conducted, enabling the deal to proceed. The project has since completed fundraising and successfully moved to construction.
Mining client, Central Africa
- Context: A mining client with a Central African asset was seeking investment for a project expansion in a politically sensitive post-conflict environment. Due to negative investor perceptions of the risk environment, the company was struggling to secure the funds it required.
- Support: We provided independent assurance on the full range of socio-political risks facing the project, which was then published in the client’s data room and used with investors. At a later stage, we also undertook a review of the company’s anti-bribery and corruption processes, providing recommendations on how these could be strengthened to avoid potential exposures.
- Outcome: Our client secured significant investment from a major PE firm as a result of our independent assurance and support to enhance its management of the issues, allowing it to move ahead with its expansion.